In a complex commercial transaction, a real estate professional discovers information that creates competing duties between their fiduciary obligation to their client and their duty to disclose material facts to other parties. How should this conflict be resolved?

Option A: Always prioritize client confidentiality over disclosure obligations

Option A is incorrect because it creates an absolute rule that doesn't account for statutory disclosure requirements. While client confidentiality is a core fiduciary duty, it cannot override all other legal obligations. Some information must be disclosed regardless of client preferences, such as material defects or fraud. Prioritizing confidentiality over all disclosure duties could result in regulatory violations and potential liability.

Option B: Immediately disclose all information to protect other parties

Option B is wrong because immediately disclosing all information breaches the fiduciary duty of confidentiality owed to the client. This approach ignores the professional's primary obligation to their client and could result in breach of contract claims and regulatory sanctions. Disclosure must be balanced against fiduciary duties, and blanket disclosure without considering client interests violates fundamental agency principles.

Option D: Continue with the transaction and address issues only if formally challenged

Option D is incorrect because it represents professional negligence and avoidance of ethical responsibilities. Continuing with unresolved conflicts exposes the professional to liability from multiple parties and potential regulatory sanctions. Waiting for formal challenges ignores the proactive duty to address ethical conflicts and could result in greater harm to all parties involved.